Misstatements or Misrepresentations in an Application for Insurance Can Void

question 62

True/False

Misstatements or misrepresentations in an application for insurance can void a policy.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, equal to the share capital plus retained earnings.

Premium

An additional amount over the normal cost, or the portion of insurance payments above the cost of the insured risk.

Discount

A reduction applied to the usual cost of goods or services, or in finance, an amount deducted from the face value of a bill of exchange or loan.

Par

The nominal or face value of a bond, stock, or coupon as indicated on a certificate or instrument.